European Developments

Transcription

1 European Developments Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Transmission Workgroup 7 th March 2013

2 EU Balancing Code

3 EU Gas Balancing Code - Timeline Comitology expected to start July 2013 European Commission envisage only one meeting required Implementation - NG will have 12 months to comply with the provisions of the code (1) but has the option to approach Ofgem for approval of a further 12 months (2)

4 ACER opinion key issues ACER Concern Detail 1. Partial Acceptance of (re)nominations Request changes to the nomination rules as the provisions may undermine the firmness of capacity and harmonisation 2. Principles of neutrality mechanism: Efficiently incurred costs 3a Transitional measures for implementation of nomination rules (2 yrs) Code should be amended to reflect that TSOs shall only pass on any costs that are economically & efficiently incurred Rules not justified and should be removed 3b. Information provision for WDOs Code should require that adequate information is provided to enable network users to comply 3c. Definitions relating to paper traders Clarification required that paper traders are not excluded from the balancing market 3d. Minimum information provision in (re)nominations (Network User/Portfolio IDs) Clarify the exact destination identifications for nominations relating to bundled and unbundled capacity 3e. NRA decision making Regulatory issues are out of the scope of the Network Code inappropriately places an obligation on the NRAs, etc. 3f. Balancing neutrality cash flows; Level of detail of neutrality provisions Separate neutrality pots for Variant 2/NDM offtakes [German regime]

5 ENTSOG Position ACER Concern 1. Partial Acceptance of (re)nominations 2. Principles of neutrality mechanism: Efficiently incurred costs 3a Transitional measures for nominations 3b. Information provision for WDOs 3c. Definitions relating to paper traders 3d. Minimum information provision in (re)nominations ENTSOG Position Revisions clarify TSO can only amend firm capacity in exceptional events/emergency situations Enable NRA to request TSO consult on the applicable rules Balancing costs can be recovered by TSO unless the NRA considers these costs and revenues as inefficiently incurred in line with national rules Rule deleted Minor changes made Any Network User shall have the right to gain access to transmission network X No change to Art.19 but some change to Art.18 3e. NRA decision making Requested changes made 3f. Balancing neutrality cash flows X No changes made to the code

6 Future GB Stakeholder Engagement National Grid NTS to provide the following updates Balancing Overview Enable stakeholders to understand the key aspects of the EU Gas Balancing Code [reminder] April National Grid NTS Impact Assessment Enable stakeholders to understand the impacts to GB Regime May NG Comitology Position Enable stakeholders to understand our views on any potential changes required to the EU code [if any] June

7 EU CAM Network Code Update and CMP Potential UNC Changes Transmission Workgroup 7 th March 2013

8 CAM Comitology The first comitology meeting took place Thursday 24th Jan 2013 Discussions continue between member states on the potential changes to the draft Regulation following the initial page turn The second comitology meeting is to take place 15 th April 2013 Commission pushing for comitology completion at the 15 th April meeting 3 4 months transposition into Member States languages This may indicate a March 2015 start date for the first Long Term CAM Auctions (effective 1 st October 2015) National Grid NTS have held initial constructive discussions with Ofgem and DECC with regards to the overall implementation approach of the CAM Regulation.

9 CMP Potential UNC Change Process National Grid will raise UNC Modification on CMP for the March Modification Panel. To meet 1 October 2013 implementation date the following timeline is proposed (please note all dates are subject to confirmation and due process): Submit to Modification Panel (21 March) Workgroup development 3 months (April/May/June) Modification Panel (to issue for consultation) 20 June Industry Consultation close - 16 July Panel recommendation 15 August Await Ofgem decision 1 October implementation date is challenging but possible under existing process

10 CMP Modification 1 Seeks to comply with the following relevant objective: g) Compliance with the Regulation and any relevant legally binding decisions of the European Commission and/or the Agency for the Co-operation of Energy Regulators Modification will introduce a number of requirements that will be reviewed as part of the introduction of Capacity Allocation Mechanism (CAM) Code: Interconnection Point as a new classification of System Point Surrender processes introduced for: NTS Entry Capacity NTS Exit Capacity

11 CMP Modification 2 Introduce AMSEC Oversubscription process (utilising many of the same features as the AMSEC surrender process) EU Transparency obligations at Interconnection Points for firm capacity products with a duration of 1 month or longer, e.g. the number of unsuccessful requests for firm capacity the volume of the unsuccessful requests for firm capacity made via non auction processes where and when capacity has cleared at a price higher than the reserve price (for auctions only) where and when no firm capacity is offered in the allocation process total capacity made available through the application of the Congestion Management Procedures To be reviewed as part of the introduction of Capacity Allocation Mechanism (CAM) Code

12 NTS Entry Capacity Applied at QSEC, AMSEC and RMSEC Auctions Common process: Offline surrender prior to auction invitation being issued Surrender capacity only utilised where bids exceed the available capacity Based on capacity entitlements NTS utilise buyback functionality to effect the capacity surrender Allocation Process: QSEC embedded within existing allocation process AMSEC / RMSEC NTS use DRSEC auction functionality to effect capacity allocation

13 NTS Exit Capacity Applied to Enduring Annual and Annual NTS Exit (Flat) Capacity application processes Common process: Offline surrender prior to application process invitation being issued Surrender capacity only utilised where applications exceed the available capacity Allocation Process: Enduring Annual embedded within existing allocation process Annual surrendered capacity allocated as non-obligated Surrender Enduring Annual NTS use adhoc reduction functionality to effect surrender of capacity holding Annual - NTS utilise buyback functionality to effect the surrender based on capacity entitlements

14 EU Interoperability & Data Exchange Network Code Update for Transmission Workgroup 7 th March 2013

15 Current Position ENTSOG is expected to issue the draft Code plus supporting document for public consultation on 28 th February 2013 The consultation is expected to close on 26 th April 2013 This presentation summarises the main provisions of the draft Code and highlights potential impacts for the GB regime National Grid NTS encourages GB players to study the proposals and respond to the consultation 15

16 Aims of the Interoperability Code Enhance cross border trade by harmonising operational, technical and communication arrangements Shippers don t face barriers any higher than if EU networks were operated by a single TSO Greater transparency for market players Enhanced cooperation TSO-TSO and TSO-shipper Internal market integration

17 Topic Areas (the barriers ) 1. Interconnection Agreements 2. Gas Quality 3. Odourisation 4. Units 5. Data Exchange 6. Capacity Calculation (included in CAM Code) A Code which contains diverse topics A supporting Code for CAM and Balancing

18 Milestones to Implementation ENTSOG must produce the Code by September 2013 ACER review period Comitology Timescales undefined TSOs required to implement its terms within 12 months after it becomes EU law This means mid-late 2015 as a best guess

19 1. Interconnection Agreements (IAs) All IPs must have IAs in place which as a minimum include the following provisions: Modification process Flow control Measurement Matching nominations Allocation rules Exceptional events Dispute Resolution

20 1. Interconnection Agreements (IAs) All IPs must have IAs in place which as a minimum include the following provisions: Modification process Covered in GB IAs & UNC Flow control Little mention in GB IAs Measurement Broadly aligns with GB IAs Matching nominations Not performed by NG, not in IAs Allocation rules Rules are not in GB IAs, OBAs? Exceptional events Not in GB IAs Dispute Resolution Broadly aligns with GB IAs

21 Matching of Nominations and OBAs Matching of nominations and allocations processes at GB IPs are currently performed by allocation agents on behalf of shippers The model being promoted requires: TSOs to do the matching and allocate shippers whole The difference between allocations and physical measurement to be managed using an Operational Balancing Account (OBA) Prevailing allocation rules could still apply if shippers don t want to change

22 What is an OBA? Nominates 4 Units Shipper TSO 4.1 Units steered Operational Balancing Account Allocates 4 Units = (4.1 4) = 0.1 GB current regime: 4.1 units would be allocated to shippers and scheduling charges apply for the 0.1 steering error OBA regime: 0.1 is allocated to the OBA which is, at some point, reconciled by a physical steer of flow between TSOs

23 2. Gas Quality Three components: Managing differences in specification at IPs Short Term Monitoring Data publication Short term forecasting of variations Long Term Monitoring (an ENTSOG obligation) The development of a harmonised gas quality specification for the EU is being progressed by CEN and is out of scope for the Interoperability Code

24 2. Gas Quality: Managing Differences Proposal: TSOs to regularly review whether differences in national specs are causing / could cause flow restrictions at IPs If so, they are to develop options and submit solutions for approval by their regulators If TSO don t agree, regulators would resolve disputes The UK : Continent wobbe differential is perceived to be the main issue

25 2. Gas Quality Short Term Monitoring TSOs to publish real time wobbe and CV data at IPs In our view, this would entail cost for no benefit to GB market participants TSOs to provide forecasts of gas quality changes to certain transmission direct connects whose processes are sensitive to variations (and potentially DNOs) This provision applies where a TSO can fulfil it using existing equipment

26 3. Odourisation Target model is non-odourised transmission networks Where different odourisation regimes could create flow restrictions at an IP: TSOs try to agree a solution and submit to their NRAs If no solution is reached or NRAs deem the solution inadequate, TSOs should work with relevant authorities to plan a move towards non-odourised network No impact for GB unless Irish IC developed a capability to physically reverse flow (Ireland to GB)

27 4. Units ENTSOG s proposal: Pressure: bar Temperature: C (degree Celsius) Volume: m 3 (n) (at 0 C and bar(a)) Gross Calorific Value: kwh/m 3 (n) Energy: 25 C reference temp Wobbe-index: kwh/m 3 (n)(based on GCV)

28 4. Units ENTSOG s proposal: Pressure: bar OK for GB Temperature: C (degree Celsius) OK for GB Volume: m 3 (n) (at 0 C and bar(a)) GB uses (s) & 15 C Gross Calorific Value: kwh/m 3 (n) GB uses MJ/m 3 Energy: 25 C reference temp GB uses 15 C Wobbe-index: kwh/m 3 (n)(based on GCV) GB uses (s) & MJ/m 3

29 4. Units ENTSOG proposal is that common units must be used for data publications and communications under the EU Codes, with use of other units permitted in addition Framework Guideline envisages harmonisation only where necessary for the purposes of interoperability Reference temperature is the main issue for GB CEN have argued for a 15 C reference temperature and MJ/m 3 to be in line with its European technical standards

30 5. Data Exchange The Framework Guideline requires the Code to foresee common data exchange solutions/standards NG NTS interpretation: the Code should set out how TSOs can work towards and manage common IS solutions over time rather than specifying the details of the technical solution ACER & ENTSOG consider that solutions should be defined within the Code itself Means new TSO-TSO and TSO-shipper IS capability for processes developed under the Third Package

31 5. Data Exchange ENTSOG is proposing the following solution for document based data exchange: Message format: [Edigas] XML Message protocol: AS4 Network: Internet

32 Summary and Next Steps The public consultation on the draft Code is expected to close on 26 th April 2013 ENTSOG is planning to host a consultation workshop in Brussels on 20 th March 2013 Webcast facility available see ENTSOG website for details of how to register National Grid NTS encourages GB industry participation For further information please contact: philip.hobbins@nationalgrid.com ( )

33 Ten Year Network Development Plan (TYNDP) March 2013

34 ENTSOG Ten Year Network Development Plan (TYNDP) ENTSOG published their third Ten Year Network Development Plan on 21 st February 2013 National Grid NTS played a key role in the development of the TYNDP There were no Red Flags for UK in the report Legal obligation for ENTSOG to produce a TYNDP every two years Based on feedback from the previous TYNDP, ENTSOG held extensive sessions to gain stakeholder input for the report There are a number of significant improvements in this report compare to previous versions. (e.g. 200 Cases modelled in this report compared to 67 in the previous report) The next few slides will provide an overview for what the actual report covers:

35 Demand Specific request to improve demand scenarios ENTSOG built on the previous report to produce the following scenarios: 1 Annual demand scenario with power generation breakdown Daily Average Demand Scenario 3 Daily Peak Demand Scenarios Design-Case Uniform Risk 14-Day Uniform Risk

36 Resilience Assessment Results The key conclusion from the modelling is that under certain climate and supply conditions, there are zones within the European gas system that will not have enough capacity to achieve a full supplydemand balance, unless a combination of FID and Non-FID projects are brought to market The below example shows the areas impacted by the disruption of transit through Ukraine FID FID 2022 Non- 2 FID

37 Supply Dependency Assessment The assessment showed UK with no supply dependency of over 20% The assessment was based on the amount of capacity available, once a supply source has been fully minimised whilst still achieving a supply demand balance Assessment based on an the yearly average demand scenario FID FID 2022 Non- 2 FID

38 The TYNDP also Includes The actual report covers various other topics, including: Historical supply and demand information 2 New peak day demand scenarios A multi-supply source scenario approach Detailed Methodology chapter Market integration and supply diversification assessment A new Barriers to Investment chapter The role of storage in the resilience cases Impact of an LNG minimisation Details of all the submitted infrastructure projects New experimental indictor showing a import dependency index The report is now published on the ENTSOG website

39 TYNDP Consultation National Grid NTS encourages GB stakeholders to complete the TYNDP consultation The consultation closes on 21 st May 2013 There is a TYNDP workshop in Riga on 21 st & 22 nd March 2013 ENTSOG is available for bi-lateral discussions with stakeholders National Grid NTS is also available to field any questions you have on the report. Please send any questions through to Bill.Goode@nationalgrid.com

40 Code Status Update Code Current Status Estimated Implementation date Congestion Management (CMP) Capacity Allocation Mechanism (CAM) Gas Balancing Interoperability Tariffs Incremental Capacity Text was published in the European Official Journal on 28 Aug Ofgem intends to issue a letter re implementation of Congestion Management Principles in GB. NG to raise CMP Mod for March Panel initial discussion with industry March Workgroup CAM code transposed into draft regulation. First comitology meeting held 24th Jan Some changes are possible to the code after the first session. Second meeting planned 15 April 2013 ACER reasoned opinion received 26 January 2013, ENTSOG submitted the revised code to ACER on 22 February 2013 ENTSOG is expected to publish the draft Code plus support / consultation document on 28 February for 2 months' public consultation. ENTSOG is planning to host a consultation workshop on 20th March in Brussels for which participation will also be available via webcast. ACER stakeholder workshop on FGs held 23 January 2013 ( Brussels and Ljubljana). Refinement of FGs/revised draft to be issued 31 January. ACER open house 4 February deadline for comments 11 February (noon CET). Final FGs expected end of March. CEER consultation paper published on 28 June "Evaluation of Responses + Next Steps published 3rd December ENTSOG incremental Task Force position developed and agreed with ENTSOG Board in February. Looking to work with CEER/ACER to develop their blueprint for Incremental Capacity ahead of Madrid Forum 1st October Q1 2015/Q (subject to NRA approval for additional 12 months to implement) 2015 TBC (earliest mid 2016) TBC

41 Gas Codes Timeline Status of Development of European Gas Network Codes Future dates are subject to change Dates shown in italics are best approximations based on current understanding. TODAY KEY Activities undertaken by ACER Activities undertaken by ENTSOG Activities undertaken by European Commission Network Code / Guideline Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2014 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Congestion Management Principles (CMP) Comitology Go Live Go Live Capacity Allocation Mechanisms (CAM) ACER Review ENTSO G revision of Code ACER Review Comitology (duration unknown) Auction (?) Go Live (?) Auction Go Live Balancing Initial drafti ng ENTSOG Drafting Cons ultati on Finalise drafting ACER Review Comitology (duration unknown) Go Live (?) Interoperability & Data Exchange ACER Develops Framework Guidelines on Interoperability Initial drafting ENTSOG Drafting Cons ultati on Finalise drafting ACER Review Comitology (duration unknown) Go Live (?) Tariffs ACER Develops Framework Guidelines on Tariffs FG Extensio n Initial drafting ENTSOG Drafting Cons ultati on Finalise drafting ACER Review Comitology (duration unknown) Go Live (?)

42 Future EU Updates Timetable aims to highlight the key items (consultations, workshops, decisions, etc.) National Grid NTS expect to cover via this agenda item in the forthcoming months Topic TX Workgroup Balancing Overview April 2013 Balancing Code NG Impact Assessment May 2013 Balancing Code Comitology position Interoperability Code key outcomes of public consultation June 2013